One immediate concern is whether regulatory authorities in various states will object to transfer of assets from some solvent A.I.G. subsidiaries to the parent A.I.G. It’s complicated because various types of insurance have different capital requirements.

The parent company could end up cannibalizing various subsidiaries.Aircraft leasing? Life insurance? Property and casualty? Workers comp?

AIG writes and adjusts California workers comp under a variety of subsidiaries.

Given the complexity of A.I.G. and the number of countries and insurance products it offers, it’s hard for an outside observer to know whether reserves for California’s workers’ comp will be prime targets to be tapped for capital to “save the parent”.

We’ll see over the next few days whether they can survive or whether the parent crashes and buzzards pick over the bones of solvent subsidiaries.

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About Julius Young

A Partner at Boxer & Gerson LLP, Julius has practiced worker’s compensation and social security disability law since 1979. He has represented thousands of individuals who have sustained life-changing injuries or illnesses while on the job. In every case, his goal is to secure the medical treatments his clients need.